TLDR
- Shares of Chewy advanced 1.9% to $23.20 in premarket hours following upgraded annual sales projections
- Second quarter adjusted earnings per share of $0.36 aligned with analyst forecasts
- Quarterly revenue increased 7.3% year-over-year to $3.33 billion, marginally topping the $3.32 billion estimate
- Company elevated fiscal year revenue outlook to $13.46B-$13.57B, surpassing consensus at midpoint
- Shares have declined approximately 34% over the trailing twelve-month period
Chewy stock moved higher during Wednesday’s premarket session after the online pet products retailer upgraded its annual revenue forecast, providing a positive catalyst for investors following quarterly results that largely met expectations.
Shares advanced 1.9% to reach $23.20 in premarket action, recovering from Tuesday’s 1.7% pullback. The stock’s most recent closing price stood at $23.27.
During the fiscal second quarter that concluded on August 2, the company delivered adjusted earnings of $0.36 per share. This figure precisely matched analyst expectations and represented an improvement from the $0.33 reported in the prior-year period.
Quarterly revenue totaled $3.33 billion, representing a 7.3% year-over-year expansion. This narrowly surpassed the Street’s $3.32 billion projection.
While the quarterly performance itself wasn’t particularly remarkable, the forward-looking projections captured investor attention.
Management Raises Annual Revenue Target
Chewy elevated its fiscal 2027 revenue forecast to a range spanning $13.46 billion to $13.57 billion. This represents an increase from the company’s prior guidance of $13.4 billion to $13.55 billion.
The updated midpoint of $13.515 billion edges above the $13.48 billion analyst consensus figure.
Looking ahead to the fiscal third quarter, management projects revenue between $3.323 billion and $3.358 billion. With analysts anticipating $3.33 billion, the company’s outlook essentially aligns with market expectations.
Challenging Performance Over Past Year
Notwithstanding Wednesday’s premarket strength, CHWY shareholders have endured a difficult stretch during 2026. The stock has tumbled approximately 34% over the past twelve months and declined roughly 30% year-to-date through Tuesday’s session.
However, shares have rebounded about 20% during the most recent three-month period, indicating some positive momentum building ahead of this quarterly release.
According to InvestingPro data, Chewy has seen zero upward EPS revisions and 12 downward EPS revisions from Wall Street analysts during the past 90 days. This pattern doesn’t typically signal strong analyst conviction entering an earnings event.
Nevertheless, the improved guidance provided sufficient ammunition for bulls to drive shares higher in early trading.
InvestingPro assigns Chewy’s financial health a “good performance” rating.
The second quarter figures demonstrate consistent, albeit modest, expansion. The top line continues advancing while the company maintains profitability.
Given the 12 negative earnings estimate revisions over the past quarter and the stock’s significant decline over the past year, the upgraded revenue guidance appears to have delivered much-needed near-term support.
The company’s revised fiscal year revenue guidance midpoint of $13.515 billion now exceeds the $13.48 billion analyst consensus estimate.
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